As industry moves toward an era of complete automation and 'mass customisation', automated guided vehicles (AGVs) are used as material handling systems. However, the current techniques that provide navigation, control, and manoeuvrability of automated guided vehicles threaten to create bottlenecks and inefficiencies in manufacturing environments that strive towards the optimisation of part production. This paper proposes a decentralised localisation technique for an automated guided vehicle without any non-holonomic constraints. Incorporation of these vehicles into the material handling system of a computer-integrated manufacturing environment would increase the characteristics of robustness, efficiency, flexibility, and advanced manoeuvrability.